Federal aid for healthcare organizations that have taken a financial hit from the COVID-19 pandemic and hospital closures and bankruptcies were among the healthcare finance topics that piqued the interest of readers in April.
Here are the five most popular finance stories published by Becker's Hospital Review in April:
1. Hospitals furloughing workers in response to COVID-19
In recent months, hospitals and health systems across the U.S. suspended elective procedures to save capacity and supplies to treat COVID-19 patients. As a result, many hospitals have lost or expect to lose a large chunk of their annual revenue, forcing them to make cost reduction a top priority. As of April 30, more than 220 hospitals had furloughed employees in an effort to remain financially stable amid the COVID-19 pandemic.
2. State-by-state breakdown of federal aid per COVID-19 case
The Coronavirus Aid, Relief and Economic Security Act created a $100 billion fund to reimburse healthcare providers for expenses or lost revenues related to the COVID-19 pandemic. The first $30 billion was delivered between April 10 and April 17 based on historical share of Medicare revenue. As a result, hospitals in some states hardest hit by the COVID-19 pandemic received less funding than those in states touched relatively lightly. HHS allocated $10 billion for the hardest hit states when it dispersed the next round of grants.
3. Mayo Clinic furloughs or cuts hours of 30,000 employees to help offset losses
Rochester, Minn.-based Mayo Clinic said it will furlough or cut the hours of about 30,000 staff members to help offset about $3 billion in losses attributable to the COVID-19 pandemic.
4. State-by-state breakdown of 354 rural hospitals at high risk of closing
Twenty-five percent of the 1,430 rural hospitals in the U.S. are at high risk of closing unless their finances improve, according to an annual analysis from Guidehouse, a consulting firm. The 354 rural hospitals at high risk of closing are spread across 40 states and represent more than 222,000 annual discharges. According to the analysis, 287 of these hospitals — 81 percent — are considered highly essential to the health and economic wellbeing of their communities.
5. Quorum Health files for bankruptcy
Brentwood, Tenn.-based Quorum Health, which operates 23 hospitals in 13 states, announced April 7 that it filed for Chapter 11 bankruptcy. The company, a spinoff of Franklin, Tenn.-based Community Health Systems, said the bankruptcy filing is part of a plan to recapitalize the business and reduce its debt by about $500 million.